Germany's SPD, CDU offer differing proposals for reform of feed-in tariff law

11 September 2013

The main German political parties have recently clarified their positions on the future of feed-in tariffs and renewable energy in advance of federal elections to be held on September 22nd, 2013.

Both the Christian Democratic Union (CDU) and Social Democrats (SPD) have argued that the nation's feed-in tariff law needs to be reformed, through they differ on details. The Green Party has maintained its support of the feed-in tariff with only minor amendments, calling for 100% renewable energy by 2030.

The Free Democratic Party (FDP) has also repeated its calls to scrap the feed-in tariff and move to a market-based model by 2022. However, even the FDP states its opposition to retroactive feed-in tariff cuts, citing the need for legal certainty.

“Analyzing the political views of the major German parties on the question of market integration it becomes visible that CDU/CSU and FDP are in agreement on a more free-market approach and that SPD and Greens are united on a cross-party basis that the forces of the free market will not adequately serve the goal of an energy supply from completely renewable sources and therewith prefer a more planned approach,” note Manfred Ungemach and Markus Przytulski of German Energy Blog.

CDU: Expansion of renewables must be linked to grid expansion

The CDU has argued that expansion of renewable energy sources must be linked with grid expansion, as well as arguing for the maintenance of baseload power. It also wants to further the development of a direct-marketing approach to renewable energy.

Perhaps the greatest concern to the solar industry among the CDU policy statements is a suggestion that renewable energy bear more responsibility for the security of energy supply.

The current CDU/FDP coalition government has proposed a target of 35% renewable electricity production by 2020, compared to 22% in 2012.

SPD: Maintain the feed-in tariff, but cut excess exemptions

The SPD, on the other hand, emphasizes maintaining the feed-in tariff system instead of direct marketing, and SPD leader Peer Steinbrück has called for reforms to remove “excessive support and exemptions”. This appears to be a reference to the growth of feed-in tariff surcharge exemptions for businesses under the CDU/FDP coalition government.

The party calls for a goal of 40-45% electricity generation from renewables by 2020. Steinbrück has also called for a reduction in the electricity tax to provide a relief for consumers.

Both the SPD and the CDU argue for a 50% reduction in the administration premium for producers of wind energy, which the SPD states will save EUR 200 million.